CARMEL, Ind. -- Insurance company Conseco Inc. confirmed it picked former General Electric Co. executive Gary C. Wendt as chairman and chief executive officer. Separately, a suit was filed in Pennsylvania against a Conseco unit, alleging the company misled policyholders about the likelihood of premium increases on its long-term-care insurance policies.

Mr. Wendt, 58 years old, succeeds David V. Harkins, who had been acting as interim...